Lear (NYSE:LEA) Posts Earnings Results

Key Points

• Lear topped expectations with adjusted EPS of $3.87 (vs. $3.51 est.), up about 24% year‑over‑year, while revenue was $5.82B (up 4.7% YoY) but narrowly below consensus.
• New commercial wins — including a GM full‑size SUV wire harness, power distribution/module awards and large China seating/harness contracts — boosted the backlog by roughly $250M over two years (≈$400M three‑year impact), and productivity/automation delivered about $70M of Q1 savings with ~$75M expected for the year.
• A recent U.S. tariff change caused a one‑time revenue reversal reducing 2026 revenue by roughly $285M YoY (≈$385M vs. the February outlook), but management said there is no corresponding earnings impact and reaffirmed full‑year guidance while targeting at least $300M of share repurchases in 2026.

Lear (NYSE:LEA - Get Free Report) announced its earnings results on Friday. The auto parts company reported $3.87 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $3.51 by $0.36, Briefing.com reports. Lear had a net margin of 1.88% and a return on equity of 13.40%. The firm had revenue of $5.82 billion for the quarter, compared to analyst estimates of $5.84 billion. During the same quarter in the prior year, the business posted $3.12 EPS. The business's revenue was up 4.7% compared to the same quarter last year.

Here are the key takeaways from Lear's conference call:

• Lear reported a strong quarter with sales up 5% to $5.8B, core operating earnings up 10%, and adjusted EPS of $3.87 (up 24%), alongside improved operating cash flow and $75M of share repurchases in Q1.
• Significant commercial wins broadened the backlog — including a GM full‑size SUV wire harness award, power distribution/module wins (and an Audi high‑voltage PDU), plus large China seating and harness awards that increased the two‑year backlog by about $250M (three‑year impact ~ $400M).
• Recent U.S. tariff changes produced a one‑time revenue reversal that reduces 2026 revenue by roughly $285M YoY (and about $385M vs. the February outlook) but management says there is no corresponding earnings impact due to passthroughs and recoveries.
• Productivity and automation under IDEA by Lear and recent acquisitions delivered ~$70M of savings in Q1 and are expected to yield ~$75M this year, supporting net‑performance targets of +40 bps (Seating) and +80 bps (E‑Systems).
• Management maintained full‑year guidance (citing macro and geopolitical caution) while noting Q2 is trending toward the midpoint‑to‑high end of the range and the company remains on pace to repurchase at least $300M of stock in 2026.

Lear Trading Up 4.0%

Shares of LEA stock traded up $5.11 during trading hours on Friday, hitting $132.24. 1,091,424 shares of the company's stock traded hands, compared to its average volume of 572,323. The stock's 50 day simple moving average is $122.88 and its 200 day simple moving average is $117.74. The stock has a market cap of $6.70 billion, a PE ratio of 16.23, a price-to-earnings-growth ratio of 0.79 and a beta of 1.24. Lear has a 12 month low of $82.88 and a 12 month high of $142.84. The company has a quick ratio of 1.05, a current ratio of 1.35 and a debt-to-equity ratio of 0.52.

Lear Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, March 25th. Stockholders of record on Thursday, March 5th were paid a dividend of $0.77 per share. The ex-dividend date of this dividend was Thursday, March 5th. This represents a $3.08 annualized dividend and a dividend yield of 2.3%. Lear's dividend payout ratio (DPR) is presently 37.79%.

Insider Buying and Selling at Lear

In other news, SVP Alicia J. Davis sold 6,630 shares of the firm's stock in a transaction on Thursday, February 19th. The shares were sold at an average price of $132.98, for a total transaction of $881,657.40. Following the completion of the transaction, the senior vice president owned 9,972 shares of the company's stock, valued at approximately $1,326,076.56. This trade represents a 39.93% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP Marianne Vidershain sold 1,590 shares of the firm's stock in a transaction on Tuesday, February 24th. The shares were sold at an average price of $135.00, for a total transaction of $214,650.00. Following the transaction, the vice president directly owned 1,862 shares of the company's stock, valued at $251,370. The trade was a 46.06% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 25,264 shares of company stock worth $3,400,687 over the last ninety days. Insiders own 1.02% of the company's stock.

Hedge Funds Weigh In On Lear

A number of hedge funds have recently bought and sold shares of the company. Compound Planning Inc. bought a new position in Lear during the fourth quarter worth $230,000. Invesco Ltd. raised its stake in Lear by 21.2% during the fourth quarter. Invesco Ltd. now owns 408,600 shares of the auto parts company's stock worth $46,826,000 after buying an additional 71,406 shares during the last quarter. Corient Private Wealth LLC raised its stake in Lear by 162.7% during the fourth quarter. Corient Private Wealth LLC now owns 40,601 shares of the auto parts company's stock worth $4,653,000 after buying an additional 25,145 shares during the last quarter. Mercer Global Advisors Inc. ADV grew its holdings in Lear by 16.7% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 5,688 shares of the auto parts company's stock worth $652,000 after purchasing an additional 812 shares during the period. Finally, Empowered Funds LLC grew its holdings in Lear by 17.4% in the fourth quarter. Empowered Funds LLC now owns 25,578 shares of the auto parts company's stock worth $2,931,000 after purchasing an additional 3,782 shares during the period. Institutional investors own 97.04% of the company's stock.

More Lear News

Here are the key news stories impacting Lear this week:

• Positive Sentiment: Q1 EPS beat and profit jump — Lear reported adjusted EPS of $3.87, topping consensus and marking its highest adjusted EPS since 2019 (and highest GAAP EPS since 2021); management cited strong demand in Seating and E‑Systems driving a roughly 24% profit increase. Lear Corp Crushes Earnings: Seating, E-Systems Drive 24% Profit Jump
• Positive Sentiment: Company press release and outlook — Lear’s PR stated Q1 results were the highest EPS levels in years and the company reaffirmed its FY2026 financial outlook, which supports upside sentiment. Lear Reports First Quarter 2026 Results; The Highest EPS Since 2021 And The Highest Adjusted EPS Since 2019
• Positive Sentiment: Analyst and media confirmation — Multiple outlets (Zacks, MarketBeat) highlight the EPS beat and rising profits; at least one analyst set a $134.92 price target ahead of the print, adding support to the rally. Lear (LEA) Q1 Earnings Surpass Estimates
• Neutral Sentiment: Revenue roughly flat to estimates — Revenue rose 4.7% year-over-year to $5.82B but narrowly missed the consensus (~$5.84B), so top-line momentum is positive but not materially stronger than expected. Lear earnings release / transcript
• Negative Sentiment: Margins and net income context — Despite higher EPS, Lear’s reported net margin was modest (~1.9%), indicating profits are sensitive to mix, costs and lower industry vehicle output; this could cap enthusiasm if auto production weakens. Lear 1Q Profit, Revenue Rise Despite Lower Auto Output

Wall Street Analysts Forecast Growth

LEA has been the topic of a number of analyst reports. TD Cowen decreased their target price on shares of Lear from $133.00 to $132.00 and set a "hold" rating on the stock in a research report on Wednesday, April 15th. Royal Bank Of Canada initiated coverage on shares of Lear in a research report on Thursday, March 12th. They set a "sector perform" rating and a $135.00 price target on the stock. Wall Street Zen upgraded shares of Lear from a "buy" rating to a "strong-buy" rating in a research report on Friday, January 23rd. Weiss Ratings reiterated a "hold (c)" rating on shares of Lear in a research report on Thursday, January 22nd. Finally, Wells Fargo & Company reduced their price target on shares of Lear from $131.00 to $126.00 and set an "equal weight" rating on the stock in a research report on Tuesday, March 31st. One analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and eleven have issued a Hold rating to the company's stock. According to data from MarketBeat, Lear has a consensus rating of "Hold" and a consensus target price of $134.92.

Lear Company Profile

Lear Corporation NYSE: LEA is a global supplier of automotive seating and electrical distribution systems. The company designs, engineers and manufactures complete seat systems, seat components and power solutions for major vehicle manufacturers. Its electrical business delivers modules and components for battery management, infotainment, body and safety electronics, as well as advanced connectivity and electrification solutions.

The seating division develops lightweight, ergonomic seat structures, trim and mechanisms that address comfort, safety and environmental targets.

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